The secretary of the Treasury of United States, Steven Mnuchin, recently expressed his lack of hope about Bitcoin in an interview to Squawk Box on CNBC. He stated that within ten years he is sure to stop talking about Bitcoin. He added that he certainly would not be investing in them for the long term.
The Sceptical Take of the Government
He had previously also commented on the legality and the negative uses of Bitcoin. He made these comments to prove the illegitimacy of the currency. His concentration was on how cryptocurrencies can be vulnerable to, and act as a means of money laundering, and be used by terrorist organizations for carrying out their transactions across borders. However, critics had hit out at him stating that these rants act as a validation of Bitcoin instead.
The Optimism of the Crypto Enthusiasts
The counterpoints to these arguments are posed by several crypto-enthusiasts. The founder of Pantera Capital Dan Morehead is one of them. He had tried to explain on the Unchained podcast, how Bitcoin could reach up to $42000 at the end of 2019. He even says that the value of the cryptocurrency can go up as high as $356000 in the near future.
The currency on the account of its algorithmic growth rate is capable to reach such figures. Moreover, he expects several technological changes in the meantime which will enable such growth. He also did not shy away from mentioning the drawbacks that can possibly affect Bitcoin’s growth; the chief of them being the problem of transaction speed of a blockchain. However, he said he is hopeful about the future. On the other hand, he is not so optimistic about the Bitcoin Exchange-traded Fund being set up very quickly. While the exchange-traded fund will increase the viability of Bitcoin as an asset class, Morehead doesn’t expect it to happen soon. He argues, Bitcoin is a relatively new asset category, and it needs to get weathered for some time before this happens.